Worldwide financial firms estimated to have lost £1.8 trillion
In a new report published by the Bank of England, it has estimated that worldwide financial firms have lost in the region of $2.8 trillion (around £1.8 trillion) due to the ongoing global credit crisis. It also added that the total money spent by central banks and governments to shore up the financial sector is hovering around the £5 trillion mark.
Due to the ongoing housing crisis, it is also estimated that around 1.2 million UK homeowners could now face negative equity, if the housing markets continue to fall.
The recent UK government £37 billion bailout plan has done little to reassure the money markets, and the latest figures on global losses is almost double that was estimated in May 2008.